How do you calculate the click-through rate?

The click-through rate (CTR) is a key performance metric used in digital marketing to measure how effective a particular ad or piece of content is at encouraging users to take action. Specifically, it assesses how many users clicked on a link compared to the total number of times that link was displayed, or the total impressions.

The correct method to calculate the click-through rate involves taking the total number of clicks on a link and dividing that by the total number of impressions. Impressions represent how many times the link was shown to users, regardless of whether they interacted with it. By computing the ratio of clicks to impressions, you can obtain a percentage that reflects the effectiveness of your content in generating interest and driving traffic.

In contrast, the other options involve calculations for different metrics. Conversions pertain to the number of completed desired actions (like purchases or sign-ups), and calculating CTR does not involve conversions or engagement rates, which are targeted at understanding effectiveness at different stages of the customer journey, rather than the direct response to a specific link. Therefore, dividing clicks by impressions is the scientifically recognized methodology for determining the click-through rate.